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Tractor Talk Discussion Forum

you know what bugs me

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farmerjon

04-10-2008 08:52:35




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In a previous message someone had said that it bugs them that a big farmer, who rents the small farmers ground, outbid the small farmer at an auction, where the small farmer was trying to buy equipment to farm his own ground again. Now this really doesnt make a lot of sence to me the small farmer is buying equipment, fert., chem., and what ever else to farm his 160 acres again. More then likely cause grain prices are through the roof. Well see where I'm from we pay good cashrent around here $150-$200 or MORE an acre. Now 160ac.x$200=$32,000, the small farmer will never make that kind of money trying to farm it on his own, with worn out equipment. To me it seems like the small farmer is getting greedy, that kind of stuff is happening around me too, where small farmers are pulling back ground to farm it themselves while prices are up, but i bet when there back down there renting it again. I say more power to that big farmer. I would have done it also. As for taking it to the scrapyard, he paid for it so i guess he can do what he wants.

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higgins

04-10-2008 13:36:11




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
Well, I'm with Dave on this. I don't understand the finances of this - even a tax deduction wouldn't cover the difference. There's just some people that are drips. There was an antique dealer in central KY that always bid up furniture. If he/she got it; I would see it sitting outside and in a wet climate....whole fields of beds, dressers, tables etc.



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tlak

04-10-2008 16:05:14




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 Re: you know what bugs me in reply to higgins, 04-10-2008 13:36:11  
Maybe he was antiquing it.



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Dave from MN

04-10-2008 13:24:55




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
It wasnt me that was in the scenario. But what bothers me is "certain" big acreage farmers that have a certain rented acreage base, which is made up mostly of 40-300 acre private farm lands. There are more people, my age and younger, even some elders, that have decided to get back in the game, be it for profit or personal enjoyment and just make a go at it. Now these are $24-$50/ acre rents. What really bothered me is that some land OWNERS have decided as soon as they aquire what they need to plant and harvest a crop, they will farm their own ground. In this case the RENTER knows what is planned and just doesnt want the LANDOWNERS aquiring. Dont know how often it happens, all I know is it has, and it is unethical. When I was a kid, area farmers were the one you trusted, they were the ones that always shared their knowledge with you, no matter if they knew you well or not. They encouraged you to farm, gave advice and told youit will be hard, but I will help any way I can. Today some are much like corperate america, cutthroat tactic's, dishonesty, and greed as the motivator.

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jose bagge

04-10-2008 13:22:34




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
Alrighty- here's what bugs me!
The "large" old timers that always talk about how they coulda bought your peice of land "xxx years ago" (insert length of time equivalent to my age) for "xx dollars an acre" (insert dollar amount equivelent to a cup of coffee), and treat both you and your land like it's still worth that...BUT when you wanna buy a peice from them, their dirt is suddenly that "more modern" 50k an acre ground that only the developers can afford...
Same ol' timer thinks nothin' of driving his equipment down my drive and across my pasture to get to his back 40, but craps his pants when he spots the girls on horseback riding the perimeter of his feild on the way to a friends house.
Hey- i'd still do anything for him, and I THINK he'd do the same, but it DOES bug me!

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mark

04-10-2008 12:57:21




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
What bugs me the most are cockroaches, followed closely by mosquitoes and fleas.



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Steven f/AZ

04-10-2008 10:47:27




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
What has me lost is my father-in-law who was renting out his land for enough $$ to cover land payment to the bank, taxes, and some profit in his pocket to live one decided to sell it. Now, when it's paid for - no more cash flow. Just doesn't make sense to me.

What kind of crops and yields do you get on land that costs $200 per acre cash rent? I could have bought 320 acres about ten years back for that price.

Cash rent prices in SW ND range from $25 per acre to $50 per acre to raise 100 bushel corn, 60 bushel wheat, and I'm not sure of the yields of sunflowers and canola...

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farmerjon

04-10-2008 09:27:16




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
Your right it is there decision, but they know what its like to fall on hard times. This year is a chance for a lot of people to make some money finally but they can't because of greedy people. This really isn't no different from a land owner raising the cashrent, but when corn is back down to $2 next year do you think they'll lower the cashrent. Hell no they won't!!!



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135 Fan

04-10-2008 09:35:42




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 09:27:16  
It's all about supply and demand. I take it you rent land? Much better to own your land than to rent. Then you can decide what to do with it. If someone else was willing to pay more to rent land or other people were getting higher rent for the same type of land, you can't blame the land owner for making more money. The land owner can't force you to rent his land for whatever he wants. He could also end up not renting it at all because he wants to much for it. Dave

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Tradititonal Farmer

04-10-2008 09:21:25




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
The land owner ain't the welfare he/she has to do what they will think will get them the best return



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135 Fan

04-10-2008 09:11:10




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 Re: you know what bugs me in reply to farmerjon, 04-10-2008 08:52:35  
The land owner can do what he wants unless there is a long term rent deal. Isn't an auction based on the highest bidder wins? Usually if both sides are friends, one will need the item more or will not bid against the other. Dave



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T-Rev

04-10-2008 12:34:42




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 Re: you know what bugs me in reply to 135 Fan, 04-10-2008 09:11:10  
Well I'll call Dad and tell him I'm locked in for life to some big acre guy. If he didn't make money when corn was $2 then he shouldn't have rented it. Just kidding but seriously:

If his total inputs were 450/acre on 160 acres, and he has to add the 200 since it would be money in his pocket, then he would need to clear 650/acre to be making extra money. Lets say 4.50 corn to be safe, and My input numbers, especially fuel are figured a little high also. At 144 bushels he gets his 32,000 back.

This includes 100/acre towards equipment, of which 50 goes towards maintenance. Then he is actually making 50 dollars/acre towards equipment he can re-sell if he wants. If he does 160 bushels per acre then he makes 15,000 a year plus gets his 32,000 back plus pays off 8000 worth of equipment. I think all my numbers are conservative, and his half of soybeans should work out about the same.

Plus he is proud to be an American Farmer, and he probably gets some cool new Agrigold or Pioneer seed corn carhartt and hat.

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